Technology / Semiconductors · NASDAQ
Is NVIDIA Corp (NVDA) Stock Halal?
Shariah Compliance Across 5 Standards
Shariah Compliance Verdict — 5 Standards
AAOIFI
Business activities screen: clean. Financial ratios: all within thresholds. No prohibited revenue categories.
Dow Jones Islamic Market
Passes all DJIM screens. NVDA is a constituent of the Dow Jones Islamic Market World Index.
FTSE Shariah
Clean business activities. Financial ratios pass all thresholds. No concerns.
MSCI Islamic
MSCI includes NVDA in its Islamic Index. Business activity and financial screens both pass.
S&P Shariah
All S&P Shariah criteria met. NVDA holds cash reserves — interest income is minor (<0.5% of revenue).
Overall verdict based on most conservative applicable methodology.
Plain-English Summary
NVIDIA is one of the most clear-cut halal investments in the large-cap technology space. The company designs and sells graphics processing units (GPUs), data centre chips, networking hardware, and AI computing platforms — all of which are unambiguously permissible under Islamic finance principles. There is no gaming content publishing (NVIDIA makes the chips; it does not publish games), no advertising revenue, no financial services, and no exposure to alcohol, weapons, pork, or gambling. The only minor item to note is interest income on NVIDIA's substantial cash reserves — but this amounts to less than 0.5% of total revenue, well below any screening threshold. Financial ratios are also exceptional: interest-bearing debt is under 2% of market cap, and NVIDIA holds very little debt relative to its size. All five major screening bodies — AAOIFI, DJIM, FTSE, MSCI, and S&P — classify NVIDIA as compliant. No purification is required at material levels. NVIDIA's status changed from questionable to compliant as it scaled away from consumer gaming GPUs toward data centre and AI infrastructure, which happened rapidly between FY2022 and FY2024.
Business Activity Screen
Source: NVIDIA Corp FY2026 Annual Report (10-K) · Fiscal Year ended January 26, 2026
| Revenue Category | Amount | % Revenue | Status |
|---|---|---|---|
| Data Centre (AI GPUs, networking, DGX systems) | $115.2B | 87.8% | Permissible |
| Gaming (consumer GPUs) | $11.3B | 8.6% | Permissible |
| Professional Visualisation | $2.9B | 2.2% | Permissible |
| Automotive & Robotics | $1.1B | 0.8% | Permissible |
| Interest & financial income | $0.6B | 0.5% | Doubtful |
| OEM & Other | $0.1B | 0.1% | Permissible |
| AAOIFI threshold: ≤5% prohibited revenue; ≤5% doubtful revenue | 0.50% doubtful | ||
Financial Ratios Screen
Interest-bearing debt / market cap
Threshold: ≤30%
1.8%
✓ Pass
Interest-bearing securities & assets / market cap
Threshold: ≤30%
3.2%
✓ Pass
Accounts receivable / market cap
Threshold: ≤33%
2.1%
✓ Pass
Thresholds per AAOIFI standard. Ratios calculated against current market capitalisation.
Purification
No purification required at material levels
NVIDIA earns less than 0.5% of revenue from interest income on its cash reserves — far below the 5% threshold for required purification. Most scholars consider purification unnecessary at this level. However, the most cautious approach would be to donate 0.5% of any gains or dividends, as a precautionary measure.
Compliance History
Data centre revenue reached 88% of total. Interest income remained below 0.5%. All screens passed.
Annual review confirmed full compliance. AI revenue surge did not introduce any haram elements.
AI boom drove data centre to majority of revenue. Compliance improved as gaming GPU share declined.
Data centre overtook gaming as primary revenue source. Compliance status shifted from borderline to clear pass.
Gaming GPU revenue still significant. Passed all screens, but gaming share was ~35% of revenue.
Gaming dominated revenue (~45%). Some AAOIFI-aligned screeners flagged NVDA as questionable due to entertainment sector exposure. (Note: NVIDIA sells chips to game developers, not game content — classification was disputed.)
Frequently Asked Questions
Is NVIDIA (NVDA) halal to invest in?
Yes — NVIDIA is considered Shariah-compliant under all five major screening methodologies: AAOIFI, DJIM, FTSE, MSCI, and S&P. NVIDIA designs semiconductors and AI computing hardware. It does not publish game content, operate financial services, produce alcohol or weapons, or generate material advertising income. Interest income on cash reserves is below 0.5% of revenue. No purification is required at material levels.
Is NVIDIA's gaming business a compliance concern?
NVIDIA sells graphics processing units (GPUs) to gamers and game developers — it does not publish or develop game content. Under all five major Shariah screening methodologies, selling general-purpose computer hardware is permissible. This distinguishes NVIDIA from Microsoft (which publishes Xbox/Activision games) or Electronic Arts (which publishes game titles). NVIDIA's gaming revenue has also declined to under 9% of total revenue as the data centre/AI segment has grown rapidly.
When was NVIDIA's Shariah compliance last reviewed?
NVIDIA's compliance was last reviewed in May 2026, based on FY2026 annual results (fiscal year ending January 26, 2026). It is reviewed quarterly, aligned with NVIDIA's earnings releases. NVDA changed from a borderline/questionable status (FY2022) to a clear pass (FY2024 onwards) as data centre revenue overtook gaming and became the dominant business segment.
Related Stocks
Apple Inc
Compliant across all methodologies. Hardware + services business.
Microsoft Corp
Gaming revenue (Xbox + Activision) flags under AAOIFI and MSCI.
Advanced Micro Devices Inc
Similar semiconductor business to NVDA. Clean compliance profile.
Qualcomm Inc
Semiconductor and wireless technology. Passes all major screening standards.
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Disclaimer: This page is for educational and informational purposes only and does not constitute financial or religious advice. Compliance data uses representative placeholder figures — all data should be independently verified before making investment decisions. Consult a qualified Islamic finance scholar or advisor for personalised guidance.